Truth in Budgeting Act of 2005 - Directs the Secretary of the Treasury to establish the Trust Fund Administration (TFA) in the Department of the Treasury to: (1) receive all revenues derived from the sale and issuance of any special rate Treasury obligation to any federal trust fund; and (2) invest them in non-federal government debt instrument index funds or in an index fund established by the TFA which reflects the rate of return in the overall non-federal government debt instrument market.
Prohibits the TFA from investing such revenues in any stocks or other forms of equity ownership or in any debt instrument issued by a foreign government or by a corporation registered in a foreign nation.
Requires the TFA to maintain such investments and resulting earnings for the sole purpose of redeeming any outstanding special rate Treasury obligations and, to the extent such investments and resulting earnings are not needed to redeem such Treasury obligations, to transfer the excess amount to meet the unfunded current withdrawal obligations (if any) of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund of the Social Security Act.
Requires the Government Accountability Office (GAO) to review TFA operations annually and certify to Congress that TFA investments are: (1) in compliance with guidelines established by the Securities and Exchange Commission (SEC); (2) free of political influence; and (3) designed to maintain the security of the investment pool while maximizing investment return.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1730 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 1730
To establish the Trust Fund Administration to invest in non-Federal
Government debt instrument index funds all Federal trust fund revenues
transferred to the Federal Government upon the issuance of special rate
Treasury obligations to such trust funds, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 20, 2005
Mr. Voinovich (for himself and Mr. Conrad) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To establish the Trust Fund Administration to invest in non-Federal
Government debt instrument index funds all Federal trust fund revenues
transferred to the Federal Government upon the issuance of special rate
Treasury obligations to such trust funds, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Truth in Budgeting Act of 2005''.
SEC. 2. TRUST FUND ADMINISTRATION.
(a) Establishment.--The Secretary of the Treasury shall establish
in the Department of the Treasury an office to be known as the ``Trust
Fund Administration''.
(b) Functions.--The Trust Fund Administration--
(1) shall receive all revenues derived from the sale and
issuance of any special rate Treasury obligation to any Federal
trust fund,
(2) shall invest such revenues in non-Federal Government
debt instrument index funds or in an index fund established by
the Trust Fund Administration which reflects the rate of return
in the overall non-Federal Government debt instrument market,
(3) shall not invest such revenues in any stocks or other
forms of equity ownership or in any debt instrument issued by a
foreign government or by a corporation registered in a foreign
nation,
(4) except as provided in paragraph (5), shall maintain
such investments and resulting earnings for the sole purpose of
redeeming any outstanding special rate Treasury obligations,
(5) to the extent such investments and resulting earnings
are not needed to redeem such Treasury obligations, shall
transfer the excess amount to meet the unfunded current
withdrawal obligations (if any) of the Trust Funds described in
section 201(c) of the Social Security Act, and
(6) shall provide to Congress an annual report on--
(A) revenues received, investments, current assets,
Treasury obligations redeemed, and amounts transferred
under paragraph (5), and
(B) the internal accounting and administrative
control systems of the Trust Fund Administration.
(c) Director; Deputy Director.--
(1) Director.--The Trust Fund Administration shall be under
the supervision of a director appointed by the President as a
noncareer appointee (as defined in section 3132(a)(7) of title
5, United States Code).
(2) Deputy director.--The director of the Trust Fund
Administration shall be assisted by a deputy director appointed
by the Secretary of the Treasury as a career appointee (as
defined in section 3132(a)(4) of such title).
(d) Annual Review.--The General Accountability Office shall review
the operations of the Trust Fund Administration on an annual basis and
certify to Congress that the investments of the Trust Fund
Administration are--
(1) in compliance with guidelines established by the
Securities and Exchange Commission,
(2) free of political influence, and
(3) designed to maintain the security of the investment
pool while maximizing investment return.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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